Kraft Heinz expects return to organic sales growth in second half of 2027

Nov 12 (Reuters) – Kraft Heinz on Thursday shared initial expectations for a return to growth in organic net sales next year, and for ​margin expansion in 2028 as the condiments ‌maker backs CEO Steve Cahillane’s turnaround plan. Here are some details: • The targets were shared ahead of the company’s investor day, and come as Kraft Heinz invests in its brands ‌to ​keep them in line with consumer ⁠expectations around health and ⁠protein, such as its high-protein version of Mac & Cheese • Last week, Kraft Heinz said it would divest its North American coffee unit as it ​moves investments into more profitable, better-performing businesses • Like other packaged food makers, the company has seen ⁠weak volumes after several quarters ⁠of price hikes • This year, margins ​and adjusted profit have come under pressure from rising costs ​of freight and some raw materials, as ‌oil prices rise due to the US war in Iran • Cahillane warned last week that 2027 would see higher pricing due to input cost pressures • Kraft ⁠Heinz expects organic net sales for fiscal 2027 to be relatively flat, with a return to growth in the ⁠second half, ‌compared with current-year expectations for a ⁠fall of between 0.5% and 1.25% • Earlier ​this ‌year, Cahillane put on hold a ​planned split ⁠of the company after taking over as CEO, preferring to fix its problems first • Kraft Heinz’s shares were up nearly 2% in premarket trading (Reporting by Juveria Tabassum in Bengaluru and Alexander Marrow in London; Editing ​by Devika Syamnath)